7 Reasons Why Singapore Is Ideal for Doing Business
1. Singapore is Strategically Located in SEA
Many foreigners register their company in Singapore, as it is practically the ultimate travel hub of the ASEAN region. With world-class shipping ports and the perpetually bustling Changi Airport, any business can more efficiently manage logistics and supply chains across the globe. Should you need to fly overseas for business trips, the sheer volume of flights in and out of Singapore daily makes it highly convenient.
2. No-Nonsense Regulatory Framework
Singapore has been among the nations with the highest Ease of Doing Business score for many decades. The country’s regulatory bodies, known for their transparency and efficiency, play a major role in this. This makes it easier for business owners to understand the regulations that apply to them and fulfil their requirements.
3. Foreigner-Friendly Policies
The Singaporean government also encourages international parties to invest and work here with various friendly business and immigration policies. There are a range of work permit schemes available for foreign professionals and entrepreneurs to operate legally here. Various grants and subsidies are also available for overseas startups.
And unlike in a handful of ASEAN countries, it is also easier for foreigners to have 100% ownership of their business – though some restrictions may apply depending on the industry.
4. Business-Friendly Taxation System
Foreigners doing business in Singapore will certainly find its taxation system pleasantly competitive. Some advantages worth noting include:
- Income is only taxed when it is generated in Singapore. Overseas-sourced income is exempted.
- The highest corporate tax rate is 17% for taxable income.
- Capital gains and dividends are not taxed.
- The country’s tiered tax system means all companies may enjoy partial tax exemptions.
- Depending on which country the foreigner is from, they may also be free from double taxation.
- The rates for Goods And Services Taxes (also known as Value-Added Tax or VAT) are also very low and are only levied on products and services sold locally.
- Singapore does not impose any duties on exports.
5. Streamlined Registration Process
As we mentioned above, the government is generally known for having transparent and efficient business regulations. This also extends to Singapore’s company registration process, which is not mired in red tape.
In fact, most companies, including foreign-owned ones, can finish registering with the Accounting and Corporate Regulatory Authority within a day. All they need is to have all the requirements on hand. The ACRA makes everything simpler and quicker by providing a one-stop registration portal.
6. Strong Data Protection Laws
As the corporate world becomes more digitised, data protection has become a major concern for businesses in Singapore. Fortunately, the country’s data protection laws ensure that local and foreign-run businesses operate with global data privacy and security standards. This gives organisations and customers more peace of mind and builds confidence in Singapore’s business environment.
7. Reliable Infrastructure
Singapore also boasts world-class infrastructure that effectively supports various industries. With advanced telecommunication networks, reliable utilities, and an efficient public transport system, businesses can be more productive and profitable.
Start a Business Smoothly in Singapore
From its strategic location to friendly tax and corporate policies, there are many valid reasons for foreigners to open businesses in Singapore. Investors can enjoy more opportunities to grow significantly and have a solid foundation in Southeast Asia.
Are you ready to take that leap of faith? Singapore has an accounting firm ready to make incorporating an even easier process for you. Consult them today to learn what you need to get started.